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Selling e scrap 2.1

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  1. #1
    EcoSafe started this thread.
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    Selling e scrap 2.1

    This question comes up often on the forum and it is a little more complicated then it seems.

    There are several classifications of sellers, each has a particular need in a buyer. Some are small quantity, some medium and some large.

    One thing we all have in common is $$$$$. This is where it gets a little complicated, $, buy themselves are not what is important, that seems like a nonsense statement but, it isn't , long time over all performance, dependability, proper business ethics, security, proper insurance, all lead to the most important things, GROSS PROFIT AND NET PROFIT.

    As you look through the various price lists you will find that ,on average, the top buyers all have the same prices, some will be .50 higher here and .50 lower there but basically they are much the same dollar wise.
    buyers all sell to national and international refineries, there margins are some where around 2% based on world Precious and semi precious metal prices.

    Is there a difference in price at our level as sellers, as much we don't like it yes, there is. Just like the scrap yard where most of us started, volume sellers get more then us small timers, IF they ask for it.

    We all like to think we are just as important to the buyer as the next guy and , we are, however the real truth is our shipments are. The easier and more convent we can make it for the buyer the more value our shipment has (mixed metal vs. sorted metal. steel vs, prepared steel,) e scrap is no different.

    Send in 100 lbs of various boards and it may take a sorter 30 min to sort it, categorize it and value it. If you sort it and layer it, the time is cut to 10 min, amortize this over 8 hrs and see where the value difference is.

    With metal prices sinking we need to work smarter or harder, which would you prefer.



    With that, I'm going to start the" Association of Electronic Recyclers" with the goal of increasing our bottom by, increasing the bottom line of the buyers and sharing that increase, This will be done through identifying and proper sorting. New tools and methods. Most of which have been covered here on the forum, some have not. To Join is Free. By banning together and doing things a little smarter we can see an increase in volume, production and most important, bottom line net $. mcw
    "anyone who thinks scrappin is easy money ain't doin it right!"

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    1956's Avatar
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    OK,OLD DUDE I am In.

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    I am confused the company that makes you sort is paying less than the one that does not.........(The ones in the industry know who I am speaking of)...........

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    Quote Originally Posted by olddude View Post
    This question comes up often on the forum and it is a little more complicated then it seems.

    There are several classifications of sellers, each has a particular need in a buyer. Some are small quantity, some medium and some large.

    One thing we all have in common is $$$$$. This is where it gets a little complicated, $, buy themselves are not what is important, that seems like a nonsense statement but, it isn't , long time over all performance, dependability, proper business ethics, security, proper insurance, all lead to the most important things, GROSS PROFIT AND NET PROFIT.

    As you look through the various price lists you will find that ,on average, the top buyers all have the same prices, some will be .50 higher here and .50 lower there but basically they are much the same dollar wise.
    buyers all sell to national and international refineries, there margins are some where around 2% based on world Precious and semi precious metal prices.

    Is there a difference in price at our level as sellers, as much we don't like it yes, there is. Just like the scrap yard where most of us started, volume sellers get more then us small timers, IF they ask for it.

    We all like to think we are just as important to the buyer as the next guy and , we are, however the real truth is our shipments are. The easier and more convent we can make it for the buyer the more value our shipment has (mixed metal vs. sorted metal. steel vs, prepared steel,) e scrap is no different.

    Send in 100 lbs of various boards and it may take a sorter 30 min to sort it, categorize it and value it. If you sort it and layer it, the time is cut to 10 min, amortize this over 8 hrs and see where the value difference is.

    With metal prices sinking we need to work smarter or harder, which would you prefer.

    With that, I'm going to start the" Association of Electronic Recyclers" with the goal of increasing our bottom by, increasing the bottom line of the buyers and sharing that increase, This will be done through identifying and proper sorting. New tools and methods. Most of which have been covered here on the forum, some have not. To Join is Free. By banning together and doing things a little smarter we can see an increase in volume, production and most important, bottom line net $. mcw
    I'd thought of doing something like this specifically for escrappers(creating a network made of escrappers so everyone knows everything and isn't lost) but wasn't sure how it woulda panned out. I'll join ya out of interest

  6. #5
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    Since I am at the beginning of this journey into e-scrap, I certainly see the value in it for me. I also believe there is value and success in working together as a group, so I am in as well.
    Have Fun,
    Harold

    I hate rules, but I love junk.


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